MTM Options Trader Newsletter | Taking on Your Option Trading Day

[image]() [image] This Week in the Market We’ve seen some volatile weeks recently, but last week may have taken the cake. Thursday was especially volatile with the market running lower, then higher and lower again at the close. Stocks were down for the week. The Dow is still above its 50-day moving average, and the S&P 500 is fighting to hold that level. Nasdaq has dropped a fair amount below its 50-day. A neutral bias on the market may make sense heading into this week, especially with a plethora of earnings from big-name stocks set for release. As expected, implied volatility and option prices rose sharply this past week. As mentioned, quarterly earnings will continue to roll with Apple, Meta, Amazon and Microsoft just a few of the popular names scheduled to report. If that weren’t enough, the Federal Reserve is expected to announce plans to keep rates stable for now but may give some clues about when cuts will begin. The latest unemployment figure is also set for release before Friday’s open. Consider protecting your investments with collars, and remember that cash is always a position. Have a safe, healthy and spirited week! Jul 30: Consumer Confidence Jul 30: JOLTS Jul 31: FOMC Aug 1: Jobless Claims Aug 1: U.S. Productivity Aug 1: Construction Spending Aug 2: Unemployment Aug 2: Factory Orders [Read Our Blog]() Taking on Your Option Trading Day Every so often, I like to remind option traders about things they need to think about before, during and after their trading day. Clearly, there are a lot of moving parts in making that decision, but there are also more than a few constants. Here are some factors I consider each trading day. Current Market Conditions You absolutely need to start here: What is the market doing as a whole? I’m not sure about you, but I would rather be on the right side of the market more times than not. To keep it simple, if the market is bullish, maybe look for more bullish trades. Then scan for opportunities based on charts using several [Continue Reading …]() MTM Watchlist Here are a few trade ideas we will most likely look at in MTM’s group coaching class this week: SPY – The market was very volatile last week and may remain so. With IV levels elevated, more credit spreads and calendar spreads will be modeled out. GOOGL – The stock gapped down after earnings and has continued to move lower. At some point, it will reverse and move higher, even if it is for a short time. Bull put spreads will be waiting. FDX – The $300 level seems to be an area where the stock likes to congregate. Potential neutral long calendars at that level will be explored. [image]( The strategies in this newsletter are for educational and informative purposes only. All information disclosed in this newsletter should not be considered complete in its entirety. Market Taker Mentoring, Inc. will not be held responsible for changes, oversights, errors or omissions. Dates, prices, news and other information may not be accurate. Please verify all information before trading. You alone are responsible for your own investment decisions. Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD), which can be obtained from your broker; by emailing investorservices@theocc .com; or from The Options Clearing Corp., 125 S. Franklin St., Suite 1200, Chicago, IL 60606. No statement in this newsletter is intended to be a recommendation or solicitation to buy or sell any security or to provide investment or trading advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Copyright Market Taker Mentoring, Inc. 2008 - 2024. All rights reserved. Reproducing or redistributing this content is a violation of federal law. [image] If you do not wish to be contacted via email, you can unsubscribe using this link: [Unsubscribe]( Unsubscribing from email notifications DOES NOT cancel your class, subscription or recurring payments. We recommend that current students do not unsubscribe from email notifications. If you unsubscribe from email notifications, you will not be notified on how to access the classes or subscriptions in which you are enrolled. Market Taker Mentoring, Inc. PO Box 117 Frankfort, Illinois 60423 United States